Risk Premiums. Here are stock market and Treasury bill returns between 1994 and 1998: a. What was

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Risk Premiums. Here are stock market and Treasury bill returns between 1994 and 1998: image text in transcribed

a. What was the risk premium on the S&P 500 in each year?

b. What was the average risk premium?

c. What was the standard deviation of the risk premium?

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Study Guide To Accompany Fundamentals Of Corporate Finance

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Risk Premiums. Here are stock market and Treasury bill returns between 1994 and 1998: a. What was

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Year S&P Return T-Bill Return 1994 1.31 3.90 1995 37.43 5.60 1996 23.07 5.21 1997 33.36 5.26 1998 28.58 4.86

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